Nvidia Reports $96.2 Billion in Revenue and Forecasts $108 Billion Quarter

Nvidia reported $96.2 billion in fiscal second-quarter revenue, up 106% from a year earlier, and adjusted earnings of $2.22 a share. Revenue and earnings exceeded analysts' consensus estimates of about $92.2 billion and $2.10 a share, respectively, while the company's outlook pointed to continued demand for AI infrastructure.

The numbers matter beyond just one company's scoreboard. Nvidia is now the world's most valuable publicly traded company, with a market cap north of $5 trillion, and its results have turned into a bellwether for the entire AI trade. When Nvidia sneezes, chipmakers, cloud providers, and even power utilities tied to data-center buildouts tend to catch a cold — or, on a quarter like this one, catch a rally.

What the guidance says

What really moved the needle wasn't the quarter that just closed, though — it was the one ahead. Nvidia told investors to expect around $108 billion in revenue for the current quarter, comfortably ahead of the roughly $104 billion analysts had modeled. That would mark the first time a company has cleared $100 billion in quarterly revenue outside of a small handful of S&P 500 giants that have ever hit that mark.

CEO Jensen Huang leaned into the moment on the earnings call, framing the AI buildout as having reached a genuine inflection point rather than a temporary spending surge. He argued that customer demand is running well ahead of what the company projected for next fiscal year's growth, and that the real limiting factor isn't interest from buyers — it's Nvidia's ability to actually manufacture and ship enough chips to meet it.

To back that up, the company pointed to its supply commitments, which more than doubled quarter over quarter, jumping from roughly $119 billion to about $279 billion. Much of that jump traces back to memory procurement, as Nvidia works to lock down the components it needs to keep pace with orders from hyperscalers and AI labs racing to expand their own infrastructure.

Margin pressure

Not everything in the report was pure upside. Nvidia guided next quarter's gross margin to about 74%, a step down from 75% in the quarter just reported, and executives signaled margins could compress further before bottoming out later in the fiscal year. The culprit is a familiar one this year: memory prices have been climbing across the industry, and Nvidia isn't immune to it, even with its outsized market power.

Company finance chief Colette Kress addressed the margin pressure directly on the call rather than letting it become a lingering question mark, noting that memory scarcity is, in part, a byproduct of the very AI buildout driving Nvidia's growth in the first place. The company has also flagged a planned price increase for some of its systems, betting that customers generating strong returns from its hardware will absorb the higher costs without pulling back on orders.

How investors responded

Shares moved in both directions in after-hours trading, initially dipping before recovering and pushing higher as investors digested the details behind the headline beat. That kind of choppy reaction has become something of a pattern for Nvidia lately — the stock has now topped estimates for eight straight quarters, and some analysts argue the market has started pricing in near-perfect execution, leaving less room for the shares to react to good news alone.

Year-over-year revenue growth has now accelerated for five consecutive quarters, but the guidance for the upcoming quarter implies growth in the mid-to-high 80% range — still enormous by any normal company's standard, but a deceleration from the 106% pace just posted. Whether that's read as a sign of the AI boom finally cooling or simply the mathematical reality of comparing against an already massive base will likely keep dividing investors well into the fall.

Relationships with OpenAI and Anthropic

Huang also used the call to reaffirm Nvidia's deepening ties with two of its biggest AI customers, OpenAI and Anthropic, both of which are reportedly weighing public listings in the near future. He said he expects both companies to remain long-term customers and partners, and added that his only regret is not having invested in them earlier and more aggressively — a comment that underscores just how central a handful of AI labs have become to Nvidia's growth story.

That relationship cuts both ways, though. Nvidia has poured billions into AI startups through dozens of investments in recent years, a strategy that has drawn scrutiny from analysts worried about circular financing — essentially, Nvidia helping fund the very companies that turn around and buy its chips. Huang has pushed back firmly on those concerns, but they're likely to keep surfacing as the AI investment cycle matures.

Why the results matter

Beyond Nvidia's own stock price, this report lands at a moment when investors are trying to figure out whether the broader AI infrastructure boom still has legs or is starting to show cracks. Nvidia's results, and its confidence in demand outstripping supply well into next year, offer one of the clearest signals yet that hyperscalers and AI labs aren't slowing down their spending anytime soon — even as questions about margins, memory costs, and market concentration continue to swirl around the sector heading into the rest of 2026.